Research on the Impact of Financial Subsidies on Sales of China’s New Energy Vehicle Industry and the Optimization of Measures

Abstract

In the energy crisis, the development of new energy enterprises is particularly noticeable, and the subsidy policies for related enterprises are constantly being adjusted. The research topic of this paper is: to investigate the impact of financial subsidies from 2017-2019 on sales of China’s new energy vehicle industry and the optimization of measures. Relevant conclusions are drawn by studying the relationship between the changes in the car sales of BYD, BAIC, and ROEWE enterprises and the changes in the relevant subsidy policies within the specified period. Second, use the qualitative study to conduct mathematical analysis on the annual sales reports of the three enterprises, and observe the impact of subsidy policies on them through data trends and changes. The results derived from the research are the reduction in subsidy did have a relatively large impact on sales, but the overall sales managed to hold firm due to the increase in the variety of models. The research also found that new energy vehicles are more accepted and sold in economically developed regions, especially in cities with limited licenses, such as Shanghai. Climate conditions were also a factor: the overall sales for Guangdong Province outnumbered Liaoning Province, which has a higher latitude. The fluctuation in sales trends in all cities is similar. The research suggested domestic NEV companies should continue to improve the technologies of motors, electronic control systems, and batteries to maximize the endurance mileage in dealing with the fiercer competition in the NEV market.